The table below offers EBIT for a potential capital investment for Fake Company Epsilon (FCE). The bullet items provide additional information. What is this project's NPV?

• The initial investment is $4,000.
• Depreciation is straight line over four years.
• An additional $350 in net working capital is needed right now, but this is 100% recoverable at the end of Year 4.
• The company's WACC is estimated at 12.0%.
• Company analysts estimate cash flow from salvage will be $1,200.
• Company analysts also estimate erosion costs of $500 in Year 1.
• The company's tax rate is 32.0%.

YEAR 1 YEAR 2 YEAR 3 YEAR 4

EBIT $300 $750 $1,265 $1,650